Customer Acquisition Cost (CAC) is a critical metric that, when analyzed with Customer Lifetime Value (CLTV), reveals insights into a business's financial health and marketing efficiency.
To calculate CAC, businesses need to assess total sales and marketing costs against the number of new customers acquired during a specific time period, using a straightforward mathematical formula.
Optimizing CAC involves segmenting audiences, improving lead quality, enhancing sales and marketing alignment, and investing in customer retention strategies to ensure sustainable growth.
Aligning sales and marketing goals creates a more efficient approach, reducing miscommunications and ultimately decreasing Customer Acquisition Costs while increasing profitability.
#customer-acquisition-cost #customer-lifetime-value #marketing-strategy #sales-alignment #business-metrics
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